UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 40501 / September 30, 1998
Administrative Proceeding
File No. 3-9745
______________________________
:
In The Matter Of : ORDER INSTITUTING PUBLIC
: ADMINISTRATIVE PROCEEDINGS
Allen Weinstein, : PURSUANT TO SECTIONS 15(b)(6)
: AND 19(h) OF THE SECURITIES
Respondent. : EXCHANGE ACT OF 1934,
: MAKING FINDINGS, AND IMPOSING
: REMEDIAL SANCTIONS
______________________________:
I.
The Securities and Exchange Commission ("Commission")
deems it appropriate and in the public interest that a
public administrative proceeding pursuant to Sections
15(b)(6) and 19(h) of the Securities Exchange Act of 1934
("Exchange Act") be, and hereby is, instituted against
respondent Allen Weinstein ("Weinstein").
II.
In anticipation of the institution of this proceeding,
Weinstein has submitted an Offer of Settlement ("Offer"),
which the Commission has determined is in the public
interest to accept. Solely for the purpose of this
proceeding, and any other proceeding brought by or on behalf
of the Commission or in which the Commission is a party, and
without admitting or denying the findings set forth herein,
except as to the fact of his criminal conviction set forth
in paragraph III.C. below, which he admits, Weinstein
consents to the entry of the findings and the imposition of
the sanctions set forth in this Order Instituting Public
Administrative Proceedings Pursuant To Sections 15(b)(6) And
19(h) Of The Securities Exchange Act Of 1934, Making
Findings, And Imposing Remedial Sanctions ("Order").
III.
On the basis of this Order and Offer, the Commission
finds that:
A. Weinstein was born on April 16, 1937 and is a
resident of Hollywood, Florida.
B. Weinstein was associated with Sheffield
Securities, a registered broker-dealer, which is now
defunct, from approximately April 1985 to March 1989.
C. On April 20, 1990, in the United States District
Court for the District of New Jersey, Weinstein plead guilty
to one felony count under 18 U.S.C. 371 for conspiracy to
commit securities fraud. The Court entered the judgment of
conviction on December 19, 1996. United States of America
v. Allen Weinstein, Cr. 90-178 (D.N.J.) (JWB).
D. The Information underlying the criminal conviction
charged, among other things, that in 1988 and 1989, while he
was a principal and one-third owner of Sheffield Securities,
Weinstein and his co-conspirators concealed the true
ownership of Sheffield Securities by falsely representing to
regulatory authorities that Weinstein owned one-third of
Sheffield Securities and that one of his co-conspirators
owned two-thirds of Sheffield Securities.
E. On December 20, 1996, the Court sentenced
Weinstein to three years probation and 150 hours of
community service, and ordered him to pay a $2,000 fine and
a $50 special assessment.
IV.
In view of the foregoing, the Commission deems it
appropriate and in the public interest to accept Weinstein's
Offer and to impose the sanctions which are set forth in the
Offer.
Accordingly, IT IS HEREBY ORDERED that, pursuant to
Sections 15(b)(6) and 19(h) of the Exchange Act, effective
immediately, Weinstein be, and hereby is, barred from
association with any
broker, dealer, investment adviser, investment company or
municipal securities dealer.
By the Commission.
Jonathan G. Katz
Secretary
Service List
Rule 141 of the Commission's Rules of Practice provides
that the Secretary, or another duly authorized officer of
the Commission, shall serve a copy of all written orders or
decisions issued by the Commission or by a hearing officer.
The attached Order Instituting Public Administrative
Proceedings Pursuant To Sections 15(b)(6) And 19(h) Of The
Securities Exchange Act Of 1934, Making Findings, And
Imposing Sanctions has been sent to the following parties
and other persons entitled to notice:
Honorable Brenda P. Murray
Chief Administrative Law Judge
Securities and Exchange Commission
450 5th Street, N.W., Mail Stop 11-6
Washington, D.C. 20549
Securities and Exchange Commission
Northeast Regional Office
Seven World Trade Center
New York, New York 10048
Attn.: Lamond William Kearse, Esq.
Allen Weinstein
3241 North 36th Street
Hollywood, Florida 33021
Jill Peterson
Senior Counsel
Branch of Regional Office Assistance
Securities and Exchange Commission
450 5th Street, N.W., Mail Stop 8-9
Washington, D.C. 20549
Administrative Proceeding
File No. 3 -
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
______________________________
:
In The Matter Of :
: OFFER OF SETTLEMENT OF
Allen Weinstein, : ALLEN WEINSTEIN
:
Respondent. :
:
:
______________________________:
I.
Allen Weinstein ("Weinstein"), pursuant to Rule 240(a)
of the Rules of Practice of the Securities and Exchange
Commission ("Commission"), 17 C.F.R. 201.240(a), submits
this Offer of Settlement of Allen Weinstein ("Offer") in
anticipation of the institution of a public administrative
proceeding against him pursuant to Sections 15(b)(6) and
19(h) of the Securities Exchange Act of 1934 ("Exchange
Act").
II.
This Offer is submitted solely for the purpose of
settling this proceeding and with the express understanding
that it will not be used in any way in this or any other
proceeding unless the Offer is accepted by the Commission.
If the Offer is not accepted by the Commission, the Offer is
withdrawn without prejudice to Weinstein and shall not
become a part of the record in this or any other proceeding,
except for the waiver expressed in Section IV with respect
to Rule 240.(c)(5) of the Commission's Rules of Practice, 17
C.F.R. 201.240(c)(5).
III.
On the basis of the foregoing, Weinstein hereby:
A. Admits the jurisdiction of the Commission over him
and over the matters set forth in the Order Instituting
Public Administrative Proceedings Pursuant To Sections
15(b)(6) And 19(h) Of The Securities Exchange Act Of 1934,
Making Findings, And Imposing Remedial Sanctions ("Order");
and
B. Solely for the purpose of this proceeding and any
other proceeding brought by or on behalf of the Commission
or in which the Commission is a party, and without admitting
or denying the findings set forth in paragraph III.B.1.
below, except as to the fact of his criminal conviction set
forth in paragraph III.B.1.c. below, which he admits,
Weinstein consents to the entry of an Order by the
Commission:
1. Making findings that:
a. Weinstein was born on April 16, 1937 and is a
resident of Hollywood, Florida.
b. Weinstein was associated with Sheffield
Securities, a registered broker-dealer, which is now
defunct, from approximately April 1985 to March 1989.
c. On April 20, 1990, in the United States
District Court for the District of New Jersey,
Weinstein plead guilty to one felony count under 18
U.S.C. 371 for conspiracy to commit securities fraud.
The Court entered the judgment of conviction on
December 19, 1996. United States of America v. Allen
Weinstein, Cr. 90-178 (D.N.J.) (JWB).
d. The Information underlying the criminal
conviction charged, among other things, that in 1988
and 1989, while he was a principal and one-third owner
of Sheffield Securities, Weinstein and his co-
conspirators concealed the true ownership of Sheffield
Securities by falsely representing to regulatory
authorities that Weinstein owned one-third of Sheffield
Securities and that one of his co-conspirators owned
two-thirds of Sheffield Securities.
e. On December 20, 1996, the Court sentenced
Weinstein to three years probation and 150 hours of
community service, and ordered him to pay a $2,000 fine
and a $50 special assessment.
2. Ordering that, pursuant to Sections 15(b)(6) and
19(h) of the Exchange Act, Weinstein be barred from
association with any broker, dealer, investment adviser,
investment company or municipal securities dealer.
IV.
By submitting this Offer, Weinstein hereby acknowledges
his waiver of those rights specified in Rules 240(c)(4) and
240(c)(5) of the Commission's Rules of Practice, 17 C.F.R.
201.240(c)(4) and 201.240(c)(5).
V.
Weinstein states that he has read and understands the
foregoing Offer; he understands that final acceptance by the
Commission of this Offer will only be by means of the
issuance of its findings and order and opinion, if any,
issued in this proceeding; and he recognizes and avers that
this Offer is made voluntarily, and that no promises,
offers, threats or inducements of any kind or nature
whatsoever has been made by the Commission or any member,
officer, employee, agent or representative of the Commission
in consideration of this Offer or otherwise, to induce him
to submit this Offer.
VI.
Weinstein acknowledges that he has been informed that
the Commission, in its sole and exclusive discretion, may
refer or grant access to this matter, or any information or
evidence gathered in connection therewith, or derived
therefrom, to any person or entity having appropriate civil,
administrative or criminal jurisdiction.
VII.
Weinstein understands that it is the Commission's
policy set forth in 17 C.F.R. 202.5(e) not to permit a
respondent to consent to an order that imposes a sanction
while denying the allegations and findings contained in that
order. In compliance with the Commission's policy,
Weinstein neither admits nor denies the findings contained
in paragraph III.B.1. above, except as to the fact of his
criminal conviction set forth in paragraph III.B.1.c. above,
which he admits. Weinstein further agrees: (i) not to take
any action or to make or permit to be made any public
statement denying, directly or indirectly, any allegation in
the Order or creating the impression that the Order is
without factual basis; and (ii) that upon the filing of this
Offer, Weinstein hereby withdraws any papers filed in this
proceeding to the extent that they deny any allegation in
the Order. If Weinstein breaches this agreement, the
Division of Enforcement may petition the Commission to
vacate the Order and restore this proceeding to its active
docket. Nothing in this paragraph
affects Weinstein's testimonial obligations or right to take
legal positions in other non-Commission litigation or
proceedings.
Dated: May , 1997
___________________________
Allen Weinstein
STATE OF FLORIDA )
) ss.:
COUNTY OF )
On this day of May 1997, before me personally
appeared Allen Weinstein, to me known to be the person who
executed the foregoing Offer of Settlement, and he
acknowledged to me that he executed the same.
_______________________________
Notary Public